News from the Bank of England concerning the state of the UK economy was followed by a decline in the value of Sterling against the US Dollar and the Euro.
The Pound hit a record low against the Euro of 82.2 pence and fell to $1.52 after the release of the gloomy financial news.
In an effort to turn things around, Mervyn King, the governor of the Bank of England, confirmed that he may consider reducing interest rates further below their current low of 3%. This news came only a week after the bank reduced rates to their lowest level in 53 years in a shock move.
Sterling also fell against the Canadian Dollar to $1.84, which be unwelcome news to Britons considering relocation to the Okanagan.